Zedcor (ZDC) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 revenues of CAD 16 million (USD 16.0 million), up 75% year-over-year and 18% quarter-over-quarter, with U.S. revenue accounting for 36% of total.

• Adjusted EBITDA reached a record CAD 5.7 million, a 68% increase year-over-year, with a 36% margin.

• Tower fleet grew to over 2,350 units, with 469 deployed in Q3 and production capacity at 40 towers per week.

• Significant U.S. expansion, especially in Texas and the Southern U.S., and continued growth in Canada.

• Customer base and recurring revenues remain robust, with high utilization rates above 90% and ongoing product innovation.

Financial highlights

• Nine-month revenue ended September 30, 2025, was CAD 41 million (USD 41.0 million), up 81% from the prior year period.

• Gross margin for Q3 was CAD 10.2 million, or 64% of revenues.

• Adjusted EBITDA for Q3 2025 was CAD 5.7 million (USD 5.7 million); nine months: CAD 14.8 million (USD 14.8 million).

• Adjusted free cash flow for Q3 2025 was CAD 7.7 million, up from CAD 3.7 million in Q3 2024.

• Net income for Q3 2025 was CAD 131,000, down from CAD 310,000 in Q3 2024, due to higher G&A, depreciation, and finance costs.

Outlook and guidance

• Production target for 2025 is 1,400 towers, with 2026 goal set at 1,800-2,000 towers.

• U.S. expansion to continue, with Houston branch opening in Q1 2026 and focus on manufacturing capacity and new product development.

• Margin expansion expected as U.S. operations scale, though near-term margins may be choppy due to growth investments.

• No significant seasonality expected outside of minor regional effects; retail client decisions slow during holidays.

• Aims to maintain high utilization rates and positive Adjusted EBITDA while growing shareholder value.